Hitachi Data Systems Announces Strategic Product Transition Plan; Company Accelerating Enterprise Server Development Program - Company Business and Marketing

Edge: Work-Group Computing Report, March 13, 2000

In a move which is an integral part of Hitachi, Ltd.'s mid-term plan disclosed late last year, Hitachi Data Systems Corp., a wholly-owned subsidiary of Hitachi, Ltd. (NYSE:HIT), Monday announced Hitachi is accelerating the development of next-generation enterprise server technology and, concurrently, ramping up further penetration in its storage and solutions lines of business.

"We are in the midst of a strategic change in the marketplace that is demanding, among other things, the ability to operate in a 100% realtime heterogeneous environment with features and scalability not yet available," said Yoshihiro Koshimizu, president and CEO of Hitachi Data Systems. "At the same time, we are seeing a continuing market demand for unprecedented levels of price performance. As a result, Hitachi, not unlike its competitors, is moving to more cost-efficient technologies and models of doing business at speeds that will guarantee our customers' success in the Internet age.

"Consequently, we have made a decision to accelerate our product development in heterogeneous enterprise servers. These servers will employ both new technologies and production techniques. In the meantime, Hitachi Data Systems will continue to deliver servers in support of existing server customer requirements. We will also deploy additional resources to enterprise storage and business solutions, details of which will be finalized in the next 90 days," said Koshimizu.

Etsuhiko Shoyama, president of Hitachi, Ltd., said, "There is no marketplace which Hitachi considers more strategically important than business solutions through information technology. Every company in this business is engaged in an increasingly accelerated process of transition.

"Hitachi is both committed to supporting and also reliant upon Hitachi Data Systems to supply the business solutions, related products, services, and market vision required by our global customer base. This strategy is integrated with the broader mid-term 'i.e.Hitachi' plan, which places a premium on being a 'best solutions' partner. We regard Hitachi Data Systems as a cornerstone of that objective. Hitachi Data Systems' customers are the premier users and innovators in this industry and we are positioning to help them sustain success in their businesses."

Recognized as a leading provider of business solutions for the world's most IT-intensive corporations, Hitachi Data Systems offers technical services, multi-platform storage subsystems, and the industry's broadest line of high-performance servers. The company's solutions are "Built for Fast Times," enabling customers to exploit the value of information technology for success in the Internet economy. These solutions reflect Hitachi's vision of allowing clients to focus on their business, and not their technology. Hitachi Data Systems is owned by Hitachi, Ltd. (NYSE:HIT) and has its headquarters in Santa Clara. For further information on Hitachi Data Systems, access www.hds.com.

Hitachi, Ltd., headquartered in Tokyo, is one of the world's leading global electronics companies, with fiscal 1998 (ended March 31, 1999) consolidated sales of 7,977 billion yen ($65.9 billion(1)). The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi's Web site at http://www.hitachi.co.jp.

(1) At an exchange rate of 121 yen to the dollar.